Budget 2012: Reaction from the IT industry

Will the UK be 'Europe's technology centre'?

Chancellor George Osborne told the House of Commons today that the UK will become Europe's technology centre.

To achieve this aim, he said the UK will need the best infrastructure available and used the super-connected cities broadband network as a basis for how this can be achieved.

David Clarke, CEO of the Chartered Institute for IT, BCS, said that if the UK wants to compete with other countries, it will have to invest more in using the right technology and that the super-connected cities broadband network is a step in the right direction.

"If we are going to be able to compete we have to invest more in using the right technology in the right way, in the same way as other countries. Within this year's Budget I would have liked to have seen some tax help with this kind of investment.

"However, I am glad to see that super connected cities will benefit from this budget which goes some way towards supporting business and innovation," he said.

Stuart Johnson, area vice president at Level 3, a provider of IP and network solutions to the government, said he was disappointed that further details on technology investment in the public sector were not provided.

"I was slightly disappointed that technology investment seemed to be broken down by industry or region and was largely focused on the private sector.

"There was no mention of public sector or cross-government initiatives despite this being where real savings and citizen benefits will be felt," he said.

In addition to the super connected cities network, the Chancellor said that the government will be cutting taxes on patents from 24 per cent to 10 per cent from April 2013 in a bid to help companies to innovate.

Smaller enterprises will be allowed an increased tax credit to invest in research and development and there will also be a £100m science fund made available.

The Chancellor also mentioned an increase in the number of apprenticeship schemes and said that there will be an introduction of "enterprise loans" similar to higher education loans where "young people can get a loan to start their own business".

Phil Smith, CEO of Cisco UK and Ireland, believes that a focus on smaller enterprises is key for long-term growth in the UK.

"What is most important from a business perspective for this Budget, is that the government continues to take steps to create an environment in which start-ups and small businesses can grow.

"There is without doubt a need for the government to develop new sources for long-term growth in the UK and this has already led to a significant focus on the efforts of small to medium-sized enterprises, particularly those working in the area of technology-enabled innovation.

"Measures outlined by the Chancellor such as enterprise finance expansion, investment in ultra-fast broadband and encouraging R&D in the UK play a critical part in this and are a positive sign of long-term thinking to build a brilliant future for Britain," he said.

According to Julian David, director general of trade body for the UK's technology industry Intellect, there are still three things that need be achieved if the UK is to become Europe's technology centre.

He said that the UK needs to make the best use of the most up-to-date technology to reverse its declining productivity and boost its competitiveness.

He said that the UK has to optimise the export potential of the UK's small and large technology companies. Finally he said that the UK has to make sure it is using technology in a way that enhances the lives of everyone within the UK.

"Intellect will be setting out its views to government on how these objectives can be met over the next few days," David said.